Why are farmers so angry about the budget?

UK farmers are protesting the 2024 Autumn Budget, primarily due to changes in inheritance tax relief that threaten the viability of family farms. The reform caps Agricultural Property Relief (APR) at £1 million, with a 20% tax rate thereafter, which farmers argue forces the sale of land and machinery, undermines food security, and breaks up generational businesses.

Why are farmers upset with their Budget?

The worry is that wealthy corporations or private investors will buy up farmland, further consolidating ownership and altering the rural landscape. Farmers argue that the two-year timeline to implement the new rules is unrealistic.

Why are all the farmers protesting?

Background. The protests were a response to proposed changes to inheritance tax on agricultural assets, which media outlets dubbed as a "tractor tax". Previously, the intergenerational transfer of farms had been made exempt from taxation in 1992 by the Conservative Major ministry, to protect food security.

Why are farmers so upset about inheritance taxes?

Farmers claim exemption from IHT keeps farms intact, passing from parent to child. If there is a tax, farms will be sold to corporate farms that will manipulate prices - or just for housing which harms the environment and cuts food production.

What has happened to farmers in the Budget?

The Chancellor announced a small change to the rules which will allow those farmers who are married, or have deceased spouses, to transfer their inheritance tax allowance to one another if one of them dies having not used their allowance.

Big changes in the 2024 Budget have led to real anger on UK family farms. What's going on?

Why are British farmers so heavily subsidised?

Producing food for the country comes with unprecedented challenges. Volatile markets, extreme weather, and rising costs are placing increasing pressure on farmers to farm in a more sustainable, nature-friendly way. To help, the UK government introduced British farming subsidies at the end of World War II.

Will UK inheritance tax be abolished?

In spite of the rumours, we don't foresee a situation where IHT would be scrapped overnight. A phased abolition, an increase to the threshold (which is currently frozen until 2027-28) or perhaps a reduction to the 40% rate are all options which the government might consider.

Will farmers have to pay inheritance tax?

Inheritance tax (IHT) will be charged on farms and farming businesses from April 2026 – farmers should consider their options to mitigate the impact.

Why do the rich not pay inheritance tax?

Unfair loopholes and exemptions allow the super rich to hugely reduce their inheritance tax bills. In some cases, allowing vast fortunes to be passed on untouched. The super rich pay less inheritance tax by passing on assets through family trusts or by using various exemptions built into inheritance tax.

Why are farmers blocking Lidl?

Protesters said inflation in food prices has not translated into fair returns for producers and accused supermarkets of exerting excessive power within the supply chain.

Why are British farmers struggling?

The report comes as farmers and agricultural workers in the UK struggle with unpredictable weather caused by the climate crisis, upcoming changes to inheritance tax on farms, and the significant post-Brexit loss of EU subsidies.

How has 2025 been for farmers?

Clearly 2025 has been another year of extremes, with one of the warmest, driest springs on record, putting pressure on growing crops and affecting yields. It had an even greater impact on grass growth, with a result that many livestock farmers had to cut into winter reserves before autumn had even started.

How has labour changed inheritance tax?

Labour's proposed inheritance tax reforms for 2025 introduce a residency-based tax system, marking a significant shift from the current government's policies. The key differences include: Residency-based taxation: Labour's plan focuses on the residency of the deceased rather than their domicile.

Has the farmers inheritance tax been scrapped?

Government proposals to tax inherited farmland have been watered down, with the planned threshold increasing from £1m to £2.5m. The climbdown follows months of protests by farmers and concern from some Labour backbenchers.

What did the chancellor say about inheritance tax?

Inheritance tax news

These proposals follow inheritance tax changes outlined in the 2024 Autumn budget where chancellor Rachel Reeves said: Inheritance tax thresholds will stay the same until 2030. From April 2027, inherited pension funds will no longer be exempt from inheritance tax.

Can I gift 100k to my son in the UK?

Yes, you can gift £100k to your son in the UK, but it's a Potentially Exempt Transfer (PET), meaning it becomes fully Inheritance Tax (IHT) free if you live for seven years after the gift; if you die within that period, it counts towards your estate, potentially incurring 40% IHT if your total estate exceeds the £325k threshold, though taper relief applies for gifts made between 3-7 years before death. You can also gift £3,000 tax-free annually, and potentially £3,000 more the following year if unused.

What is the 7 year rule for farmers?

In farming, the "7-year rule" primarily relates to Inheritance Tax (IHT) planning, where gifting farming assets (land, buildings) to beneficiaries requires the donor to survive seven years for the gift to become fully exempt from IHT, falling out of the estate, though recent reforms starting April 2026 cap full relief at £1 million. It also affects Agricultural Property Relief (APR), which usually needs 7 years of ownership (or 2 years if farmed by the owner) for full IHT relief, though new rules will limit this to the first £1m of assets from April 2026, creating a "seven-year lottery" for farmers planning their legacy. 

Can I give my house to my son to avoid Inheritance Tax?

Yes, you can gift your house to your children to potentially avoid Inheritance Tax (IHT), but it's complex: you must survive the gift by seven years, or pay tapered tax if you die sooner, and you can't keep living there rent-free (a "gift with reservation of benefit") unless you pay market rent, or the house stays in your estate. Key risks include losing control of the home and potential issues with Capital Gains Tax (CGT) or Stamp Duty for your children, and the risk of it being seen as deliberate deprivation of assets if you need care funding later. 

Which country has the worst debt?

Ranked: Countries With the Most Government Debt in 2025

• The U.S. ($38.3T) and China ($18.7T) are the two countries with the most government debt, and together make up just over half of the world's total debt ($110.9T).
• The top five countries make up 67% of the world's government debt, while the top 10 make up 81%.

What is the only country that paid its debt?

Romania's record - having all of its debts to commercial banks paid off in full - has not been matched by any other heavily-indebted country in the world. The policy to repay - and, in multiple cases, prepay - Romania's external debt became the dominant policy in the late 1980s.